The Dominvs Group has sold its Holiday Inn Manchester City Centre property to a controlled affiliate of Starwood Capital Group, off a guide price of £55m.
The 298-bedroom hotel, which will be managed by Kew Green Hotels under a franchise agreement, will continue to be branded as a Holiday Inn.
The freehold site was acquired by real estate and private equity business Dominvs in 2013, and planning permission was secured to build the property two years later before opening in April 2016.
Dominvs sold three of its hotels (the Holiday Inn Darlington North, Holiday Inn Dumfries and Mercure Sheffield Parkway) off a £12m guide price to Asian company Fico Corporation last year. It said the sales are part of the group’s wider strategy to grow its development pipeline in gateway cities such as Bath, Cambridge and London.
The company is now left with two hotels: the 165-bedroom Crowne Plaza and 193-bedroom Holiday Inn Express, both at Aberdeen Airport. It is also developing two sites in London, including a 191-bedroom hotel at Tower Bridge, a 145-bedroom property in Oxford, and one in Edinburgh.
JLL advised Dominvs on the deal.
Will Duffey, head of UK and Northern European hotel transactions at JLL’s hotels and hospitality group, said: “The offering was a compelling play for investors, given the quality of build, accelerated ramp-up in its first year of trading and ultimately its location in one of the strongest-performing markets in the UK.”
Preet Ahluwalia, hospitality portfolio director at Dominvs Group, added: “The decision to sell allows us to focus on our wider strategy, which is to grow our development pipeline in key gateway cities such as Bath, Cambridge and London.”
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